ZEL - Z Energy.

**Maverick** · 11-05-2020, 09:23 AM

Originally Posted by trader_jackson

and the raising is to be kicked off at $2.75? I wouldn't pay $2 for the shape Z Energy is in... income uncertain and in recovery mode for the next few years, no dividend now till (crossing fingers) FY22 and dividends unlikely to be as big as they were for a very long time, 6 cent NTA topped off by a terrible balance sheet post capital raising (putting it lightly)

Yep, all of that TJ, all true.....let's just also remember that COVID only affected fuel consumption for 1 week of this reporting period. Z managed to achieve most of this disaster all by this themselves!
This company has got serious and systemic issues way before covid gets layered over it.
interesting that Morningstar have a valuation of $8.30. Maybe they are still at lockdown level 4 and having internet issues.

**Beagle** · 11-05-2020, 10:07 AM

Originally Posted by winner69

**** hits the fan big time ....big loss reported

No divie until after Sept 2021

And $350m capital raise (at $2.75)

Tough world

http://nzx-prod-s7fsd7f98s.s3-websit...920/322308.pdf

When you consider this is an essential commodity the effects of Covid 19 are sobering on their operations BUT there have been systemic issues within this company for a while with a massively bloated cost structure that they're only now having to address, (no doubt under duress from their banks).
Even after this equity raise they still have a tremendous amount of debt and I believe they are vulnerable to ongoing market share losses so I will continue to avoid.

I also agree with t.j's post #1600 above.

**peat** · 11-05-2020, 10:22 AM

good that they wont go under for a while so I can use my Sharetank

j/k
maybe not.

**Beagle** · 11-05-2020, 10:48 AM

Maybe struggle to raise the capital ? I see a banner headline on Direct Broking at the top of the page with the headline that if you want to participate in the capital raise please phone us... If there's shares freely available for retail punters then one has to wonder if that's a good indicator or not...
I see the underwrite agreement has the usual termination rights to it, whatever that means, I suppose there's a well defined MAC clause in there

Whatever they raise they will claim this exercise as a success...

I see the virtual tank in the same light as the airpoints with AIR. Probably has similar MAC and force majeure clauses to the virtual tank as the airpoints scheme does ?

**peat** · 11-05-2020, 11:27 AM

Originally Posted by Beagle

Maybe struggle to raise the capital ? I see a banner headline on Direct Broking at the top of the page with the headline that if you want to participate in the capital raise please phone us... If there's shares freely available for retail punters then one has to wonder if that's a good indicator or not...
.

I assumed that still meant you had to be a shareholder , are you suggesting otherwise?

Originally Posted by Beagle

I see the virtual tank in the same light as the airpoints with AIR. Probably has similar MAC and force majeure clauses to the virtual tank as the airpoints scheme does ?

It wont take me long to spend it when the L2 comes back into play. I have got some serious travelling to do to catch up to my plans hahah.

**Joshuatree** · 11-05-2020, 11:32 AM

We havnt had any ZEL since our big selldown on Feb 4th but we have been offered some $2.75-$2.85 and we have to let them know by midday.

**see weed** · 11-05-2020, 11:50 AM

ACC will be a bit peeved. They just topped up with extra +$4m on 1/5/20. Where do you think sp will be after trading halt? I am expecting about a 20k to 30k loss when market opens

. Not too bad compared to ACC's loss.